Link To Article: https://www.bbc.com/news/articles/czj31l4p7vzo
This article discusses how the current trade war between the US and China intensified as China reacted to higher US tariffs with retaliatory economic actions. Beijing slapped tariffs of 15% on US agricultural products and 10% on aquatic products, beef, and other commodities. It also cut back exports of rare earth metals and added US companies like Illumina and Calvin Klein to trade restriction lists. China also initiated an anti-monopoly investigation into Google. As the US shoots for China’s economy, Beijing is countering in measured steps, trying to be as locally benign as possible while signaling pushback. China’s move is said to affirm its sovereignty in international trade while resisting US economic coercion.
The article highlights how China’s retaliatory measures demonstrate its strategic strategy—hurting particular US industries while avoiding serious damage to its economy. The American agriculture and fossil fuel tariffs are intended to damage US exports without seriously upsetting China’s supply chain. The rare metals restriction further confirms China’s control of the global resource reins. Moreover, Beijing’s non-tariff actions, including investigations into US companies, replicate Washington’s tactics. But China’s response is measured; it is careful not to escalate too sharply and hurt its economy or trade with other global partners. This implies a longer-term strategy of endurance rather than confrontation.
There are many different stakeholders involved in the trade war and they can respond differently based on their interests. The government of the US may increase tariffs even more or negotiate under election pressure, particularly because elections are approaching. The government of China may add additional trade restrictions and develop stronger alternative supply chains. US businesses, especially agricultural and energy businesses, may demand lower tariffs or discover new markets. Chinese businesses may turn to local suppliers or seek to trade with non-US allies. Consumers in both countries may have their prices raised, and therefore they might alter the way they spend. World markets may react through volatility, and other nations may exploit interrupted flow of trade.